Both hire purchase and lease purchase give you eventual ownership of the asset at the end of the repayment term.
It’s suitable for light and heavy commercial vehicles, engineering machinery, construction equipment, buses, coaches and miscellaneous plant.
- Fixed monthly payments allow you to budget over the term
- Simple documentation
- A means of spreading the cost over the useful life of the asset
- You are the owner of the asset for tax purposes and can claim capital allowances
- Monthly repayments do not attract VAT
- Hire purchase charges can be offset against profits for taxation
- If you are registered for VAT, you can reclaim VAT on the capital cost of the asset